Postie Plus sheds Babycity | IR News

Postie Plus sheds Babycity

Inside a Babycity store in Lower Hutt, New Zealand.

Posted Date: 23/04/2012

By Inside Retail

Christchurch-based Postie Plus Group is to sell its chain of Babycity stores as it streamlines its retail operations in readiness for expansion.

Group chairman Richard Punter said Babycity did not fit the business model and growth strategy of the group.

"The sale of Babycity is an important step to reconcile our business model to that of Postie Group and our flagship retail brand," he said. "We believe that the group should eventually be twice the size it is today and while some of that growth will be organic, we intend to acquire complementary brands that we have identified to further develop our retail footprint nationwide."

"We have locked in efficiency gains and improvements in the cost of doing business, securing a solid structural, operational, and financial platform for managed growth so as to achieve our aim of being a modern, exciting retailer well connected with customers in multiple retail channels," he said.

Babycity stores sell baby care products ranging from apparel to hardware, including cots, high chairs, prams, strollers, and car-seats.

Postie Plus CEO Ron Boskell said the purchaser was Baby City Retail Investments Limited, a company run by Trevor Douthett and owned by him in partnership with private equity investors.

Douthett, formerly of appliance chain LV Martin, has had a desire to enter the retail market as an owner operator and values the Babycity brand. Completion of the transaction is scheduled for early May, subject to shareholder approval.

"Trevor is looking forward to working closely with the existing team and the Babycity business will continue to have its apparel supplied by Postie Plus Group under a wholesale agreement," he said.

Postie Plus Group operates retail stores under the Postie Plus name throughout New Zealand. Its retail stores provide a range of casual fashion clothes for men, women, and children; sleepwear and lingerie; accessories; and cosmetics. These stores also offer Schooltex branded school uniforms, sportswear, and footwear.

GB

Keywords: Postie Plus Group Limited, Babycity, Baby City Retail Investments Limited

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